Customer Relationship Management is a process of Acquiring, retaining, and growing profitable customers, Lawrence Hayden, putting CRM to work, the rise of relationship, CRM a strategic Imperative in world of E-business John Wiley and sons,2000, Page 10-11.
The Infrastructure that enables the delineation of and increase in customer value and the correct means by which to motivate valuable customers to remain loyal-indeed to buy again. Jill Dyche, the CRM hand book: business guide to customer relationship management, Pearson education, asia,2002,page 4.
An enterprise approach to understanding and influencing customer behavior through meaningful communications in order to improve customer Acquisition, customer retention, customer loyalty and customer profitability. Roger S Swift, Accelerating Customer Relationships, Prentice Hall PTR, 2001 page 7.
The role of Customer Relationship Management is to identify, establish, maintain and enhance relationships with customers and other stakeholders, at a profit, so that the objectives of all other parties involved are met, and that this is done by a mutual exchange and fulfillment of promises. Gronroos, Marketing redefined, Management Decision, Vol. 28, No 8, 1990, pp 7.
Direct marketing followed the mass marketing strategies but closely monitored the responses. Direct marketers created different versions of the communications and promotion material, catering for different parts of the country.
normally the response to direct marketing was very less.
However direct marketing proved to effective in marketing certain products and also served as an important purpose.
It established that the consumers had preferences and that marketing campaigns and messages could be tailored to meet customer preferences. This lead to Target Marketing.
According to (Phillip Kotler, 1984) with the advancement of technology and refinement in direct mail and telemarketing, the use of information systems technology allowed the selection of specific ( targeted ) customers via mail or telephone
target marketing had advantage of potentially receiving a direct response from a customer
target marketing recognized the need to interact more with customers but at very superficial level
lack of specific data as it relates to responses from the targeting means resorting to averages for response rates customer purchases and other data.
Stage IV ; CRM (Customer Relationship Management) : According to (Peppers. D and Rogers. M, 1993) CRM is
The first variable is information and analysis ( knowledge) one has to know what the customer wants, needs, and values. CRM is to Segment the Customer by developing a number of homogeneous subgroups form the heterogeneous markets.
The second variable is the need for interactivity and personal contact and the way in which the customer wants to be contacted.
Customer Need Assessment and Acquisition Customer Retention and referrals for new customers Customer Development through personalization and customization Customer Equity Leverage through cross selling and Up selling CRM Migrate Migrate Migrate Migrate